$name

$name

Global Markets Special Focus Reports

10 October 2011

• The significant deceleration of economic growth in advanced economies along with monetary tightening has resulted in the moderation in emerging markets’ economic expansion over the past year.• Economic sentiment indicators across all emerging market regions point to further weakness in the remainder of 2011.• Inflation in most emerging markets is expected to come down only gradually, given that there are still risks of second-round effects from past food and energy hikes and spill over of still high producer prices into core inflation. • The emerging market policy tightening cycle has likely reached its peak, easing some of the headwinds that interest rate hikes brought to real incomes and private consumption.• We believe that most emerging economies are well-positioned to withstand deepening turbulence in the global economy and growth is expected to remain robust, despite the ongoing slowdown.